Offer: person making the offer is the of offeror and must communicate an offer to the offered clearly; offer can be revoked before acceptance, however if accepted cannot revoke. Offer lapses under three conditions; passage of time, counteroffer, the party dies Acceptance: acceptance must be communicated in the manner the offeror requests Consideration: exchange of value between parties, the quid pro quo coming in the form of money, performance of a service or promise not to do something